The Emirates Group has recently announced a remarkable achievement in its financial performance. For the first half of the fiscal year 2023-24, the Group reported a net profit of AED 10.1 billion (US$ 2.7 billion). This impressive figure not only surpasses last year’s record half-year profit of AED 4.2 billion (US$ 1.2 billion) by a staggering 138% but also marks the best-ever six-month financial result in the Group’s history.
The Group’s revenue reached AED 67.3 billion (US$ 18.3 billion) during the first six months of 2023-24, showing a 20% increase from the previous year’s AED 56.3 billion (US$ 15.3 billion). This surge in revenue is attributed to the growing global demand for air transport, which has been on a steady rise since the lifting of the last pandemic travel restrictions. The Group also reported an EBITDA of AED 20.6 billion (US$ 5.6 billion), a significant improvement from AED 15.3 billion (US$ 4.2 billion) during the same period last year, highlighting its strong operating profitability.
As of September 30, 2023, the Emirates Group maintained a robust cash position of AED 42.7 billion (US$ 11.6 billion), slightly up from AED 42.5 billion (US$ 11.6 billion) on March 31, 2023. This financial strength enabled the Group to manage its business needs effectively, including making debt payments. Notably, Emirates has repaid AED 9.2 billion of its COVID-19 related loans and paid a dividend of AED 4.5 billion to its owner for the 2022-23 financial year.
His Highness (HH) Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Airline and Group, expressed his views on this achievement: “We are seeing the fruition of our plans to return stronger and better from the dark days of the pandemic. The Group has surpassed previous records to report our best-ever half-year performance. Our profit for the first six months of 2023-24 has nearly matched our record full year profit in 2022-23. This is a tremendous achievement that speaks to the talent and commitment within the organisation, the strength of our business model, and power of Dubai’s vision and policies that has enabled the creation of a strong, resilient, and progressive aviation sector.”
Emirates Airline’s Operational Highlights
Emirates Airline, a key part of the Group, has been actively increasing its global flight operations. The airline restored A380 operations to several destinations and launched daily non-stop services to Montreal. It also expanded connectivity through codeshare or interline agreements with eight airlines, including a five-year extension of its partnership with Qantas.
By September 30, Emirates was operating flights to 144 airports, utilizing its entire Boeing 777 fleet and 104 A380s. The airline also rolled out 10 A380 aircraft from its retrofit program with new cabin interiors and Premium Economy seats, expanding its premium services to more routes.
In the first half of 2023-24, Emirates launched a global brand advertising campaign featuring Penelope Cruz and introduced several customer experience enhancements. The airline’s overall capacity increased by 25% to 28.5 billion Available Tonne Kilometres (ATKM), with a 30% increase in Available Seat Kilometres (ASKM) and a 35% rise in Revenue Passenger Kilometres (RPKM). The average Passenger Seat Factor was 81.5%, up from 78.5% during the same period last year.
Emirates Skycargo’s Performance and Emirates’ Profitability
Emirates Skycargo uplifted 1,035,000 tonnes in the first six months, an 11% increase from the previous year. Emirates airline itself reported a record half-year profit of AED 9.4 billion (US$ 2.6 billion), with a revenue of AED 59.5 billion (US$ 16.2 billion), up 19% from the previous year. The airline’s direct operating costs grew by 9%, with fuel being the largest component at 34% of the operating cost.
HH Sheikh Ahmed added: “For the second half of 2023-24, we expect customer demand across our business divisions to remain healthy and we will stay agile in how we deploy our resources in this dynamic marketplace. At the same time, we are keeping a close watch on headwinds such as rising fuel prices, the strengthening US dollar, inflationary costs, and geo-politics.”
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